Good Thinking Senators.....
From today's NY Times, an article about how "the Chinese government has sharply stepped up the appreciation of its currency, allowing it to push through an important level against the dollar on Thursday for the first time."
The recent climb of the Yuan (depreciation of the dollar, see graph above) — less than a full percentage point since the beginning of September — is still modest and perhaps will not last. But it is producing cautious hope in the Bush administration that the Chinese government may be lifting its opposition to a revaluation that could ease China’s huge trade surplus with the United States.Good thinking senators....... because how would 27.5% taxes (tariffs) on Chinese products that would be imposed on, and paid for, by US consumers and US business "punish China?" And wouldn't that be "price gouging?"
And partly in response to the currency lift in China, two influential senators in Washington announced Thursday that they were pulling back legislation that would punish China with 27.5% tariffs if it did not allow the value of its currency to rise, a step that would make exports to the United States more expensive and imports from America more competitive.